US President Donald Trump announced a temporary pause of Project Freedom, the Hormuz escort operation, pending a final Iran agreement.
The naval blockade against Iran stays in place, while Iran and the US exchange accusations over recent maritime attacks.
Brent crude fell below $110 per barrel as markets priced in reduced conflict risk and potential restoration of oil flow.
Shipping giant Maersk reported one vessel transited the Strait under US protection, though overall traffic remains near zero.